9780273781530

0273781537

9780273781523

0273781529

0273781340

0273781537

9780273781349

9781292007621

Cover; Contents; Acknowledgements; About the author; Foreword; Part 1: Introduction; Chapter 1: Introduction to markets and portfolios; Where do we hope to end up?; Chapter 2: What is an edge over the markets and do you have it?; The competition; You just have to pick your moment; The costs add up; Should we give our money to Susan and Ability?; You need to pick the best mutual fund out of 10 for it to make sense!; Outside stock markets; Being rational; Chapter 3: What are the key components of the rational portfolio?; Asset split in a rational investment portfolio

Understand the level of risk you are comfortable withDonâ#x80;#x99;t put all your non-investment eggs in one basket; Reducing tax has a large impact on long-term returns; Paying too much in fees destroys asset growth; Implementation; Speculate less, sleep better!; Part 2: The rational portfolio; Chapter 4: The minimal risk asset â#x80;#x93; safe, low-risk returns; Buy government bonds in your base currency if credit quality is high; Perhaps diversify even the very low risk that your domestic government fails; Matching time horizon; Inflation-protected bonds; What will the minimal risk bond earn you?

Buying the minimal risk assetSummary; Chapter 5: World equities â#x80;#x93; increased risk and return; Buy equities from around the world; The advantage of diversification; What are world equities?; Expected returns: no promises, but expect 4â#x80;#x93;5% after inflation; Larsâ#x80;#x99;s predictions; In summary; Chapter 6: The risk of equity markets; Understanding the risk you take to get returns; The standard deviation; You can lose a lot!; Donâ#x80;#x99;t assume that markets always bounce back; Diversification and the false sense of security; Risk rethought; Chapter 7: Adding other government and corporate bonds

Adding government bondsOnly add government bonds if they increase expected returns; The government bonds we should add to the rational portfolio; Adding corporate bonds; If history is any guide .â#x80;#x89;.â#x80;#x89;.; Getting practical; Corporate bond returns also depend on credit quality; Return expectations of the rational portfolio; Adjusting the rational portfolio; Using equity risk insights in the context of a full rational portfolio; The rational portfolio allocations; Special case: if you want a lot of risk; Chapter 8: Incorporating other assets; What else do you have?; Other assets

Not just geographyThe institutional investor; Other assets rethought; Chapter 9: What is omitted from your rational portfolio and why; Avoid investments that require an edge or those you already have exposure to; Property â#x80;#x93; donâ#x80;#x99;t do it unless you have an edge; Private equity, venture capital and hedge funds; Commodities; Private investments (or â#x80;#x98;angelâ#x80;#x99; investing); Collectibles; Part 3: Tailoring and implementing the rational portfolio; Chapter 10: Financial plans and the risks we take; Building your savings; The super-cautious saver; Risk/return; Generalising the examples